Friday, 10th October 2025

Spain Proposes 100% Tax on Non-EU Property Buyers

Ambitious plan seeks to tackle housing crisis and soaring rents in urban and coastal areas

The Spanish government has unveiled a bold proposal to impose a 100% tax on property purchases by non-EU citizens, as part of a sweeping initiative to address the nation’s housing crisis. Prime Minister Pedro Sánchez announced the plan, which aims to improve housing affordability, regulate the rental market, and provide greater support to struggling tenants.

“The West faces a pivotal challenge: to avoid becoming a society divided between wealthy landlords and impoverished tenants,” Sánchez declared, underlining the urgency of the measures.

Spain, like many affluent nations, is grappling with worsening housing accessibility. Urban centers such as Barcelona and Madrid have seen rents soar, far outpacing income growth, particularly for younger generations. Coastal regions, long favored by international property buyers, have also experienced a sharp rise in home prices.

The proposed tax is one of several measures designed to cool demand from foreign investors, whose purchases are often blamed for driving up property prices. Sánchez’s government intends to strike a balance between protecting local housing markets and maintaining Spain’s appeal as an international destination.

With rents and property prices continuing to climb, the plan has ignited debate among economists, landlords, and citizens alike. While supporters applaud the government’s effort to prioritize housing for residents, critics warn of potential repercussions for Spain’s property market and international investment.

The initiative reflects a growing trend among European nations to address housing inequalities, as leaders seek to prevent the divide between homeowners and tenants from widening further. If approved, Spain’s policy could serve as a precedent for others confronting similar challenges.

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